June 21, 2013

US milk production up 0.8% in May

US milk production in top 23 dairy states increased 0.9% in May compared to the same month a year ago while the entire country's production was up 0.8%.

According to the USDA, increases were most pronounced in the Midwest. For example, Kansas was up 8.1%; Indiana, 5.2%, and Iowa, 2.9%. California, the nation's no. one milk-producing state, was down 0.5%.

"We would term this report as generally neutral to slightly bearish versus our pre-report expectations," says dairy analyst Dave Kurzawski, with FCStone in Chicago. "More milk was made than we expected, but in the larger picture this has been simply a lackluster milk flush."

This is an abbreviated milk production report from the USDA. Initially, the USDA suspended the report and several others in the wake of the automatic federal budget cuts known as sequestration. However, the department reversed its decision and announced that it would provide partial milk production estimates through September.